I'm working on my son's taxes and struggling with interpreting some information. In 2024, he had his employer send $270 directly into his Roth IRA account bimonthly (via ACH), as well as two additional ACH transactions for the same amount from two bonuses, so a total of $7020 in ACH. However, it appears that one of the ACH transactions (from 4/1/2024) was not credited as an individual contribution as the others were. Also, the final ACH for the year (12/31/2024) was credited as a rollover instead of an individual contribution (no idea why).
To complicate matters further, he had an excess distribution in 2023 of $270 with $15.15 of interest. We caught it early enough for him to take an early distribution of that total ($285.15) in Feb 2024 and submitted Form 5329 with his 2023 tax return (paid taxes on the $15.15 interest, no penalty on the $270 since he took the distribution before the tax filing deadline). However, the $285.15 wasn't removed from the account and is categorized as another individual contribution for 2024.
The brokerage firm shows his 2024 Roth IRA Contributions were $6765.15 on the home page. However, the year-end statement has that amount listed as YTD individual contributions as well as the $270 rollover and the total for 2024 contributions as $7035.15 (so the 4/1/2024 ACH is not included).
So, my questions are:
1) Should the 4/1/2024 contribution be included in his 2024 Roth total contribution?
2) How do we handle the 12/31/2024 "rollover" contribution? I'm really lost on this.
3) Is the early distribution & interest ($285.15) considered a "repayment of a retirement distribution"?
4) What's the final amount that should be considered his 2024 Roth IRA contribution on the "Enter Your Roth IRA Contributions" page?
Any help you can provide would be greatly appreciated!
